It’s rare, but sometimes businesses don’t always make their repayments. At Crowd2Fund, we have an effective process in place to recover your money, where possible.

Crowd2Fund conduct thorough due diligence on all opportunities listed to check for their credit worthiness, before listing on the platform. Where possible, security or a personal director guarantee is taken against the loan to help recover the debt if something goes wrong.

The following definitions will help you understand your investments. Your portfolio status is shown on your dashboard when you login.


This is the percentage of your loans that are recoverable but where the business has made a late repayment. This is when businesses are behind with their contractual payments due to internal or non-controllable issues like changing bank details or delayed debtor payments.

Your default rate

This is the percentage of your loans that are in either default or/and undergoing legal proceedings. These cases might take longer to recover the debt and dependent on the complexity of the case. Crowd2Fund represents your interests in court.


On occasion, a business that has been listed on the platform has failed. When this happens Crowd2Fund represents your interests in court. Investors should remember their capital is at risk and they should not invest more than they can afford to lose. Generally funds can only be recovered with debt based investments.

Written off percentage

This is the percentage of loans that are not recoverable and your total losses to date. To reduce your investment risk, it is always advisable to invest in different businesses and different products. You can read the full risk warning here.

Average debt written off

Average debt written off is the amount of debt that has been written off and is not recoverable across all outstanding platform loans.

Bad debt summary

RecoverableYour default rateWritten offRecovered
CommunicationSoftLegalNot recovered the fundsRecovered the funds
Estimated timescale45 days90 days180 daysN/A
Platform statistics
Target statistics3.00%2.00%1.00%60%
Estimated timescale
Platform statistics
Target statistics
Last updated on 22nd September 2020
More information

Recovery process

Late but recoverable – Soft communications

We always try to take a pragmatic approach to initially recovering funds from businesses. Communication is key at this stage in order to try to help to find a solution to the problem. Phone calls, letters and emails will be sent to the business to remind them to settle the loan repayment.

Defaulted - Debt recovery agents or legal proceedings

After 3 months of missed repayments, the loan goes into default. This is when the legal proceedings start. Most, but not all Crowd2Fund loans have either security or a director guarantee. The legal proceedings will involve leveraging these agreements to recover the funds from the business or the directors.

Written off - Mostly non-recoverable

If in the unlikely situation a loan is not recoverable, then it is written off and the investor makes a loss on that investment. The target debt to be written off is set at 1% and is currently at 2.2%.

Stage breakdown

Recovery steps

The recoveries process is broken down into a number of different stages illustrated in the timeline below. During this process, we use several legal remedies to ensure efficient clearing of all arrears.

In arrears
Default Letter
Statutory demand
Bankruptcy petition
Court order

In Arrears

Receive an alert from Go-Cardless of failure to pay or a mandate has been cancelled. 5 working days from missed payment and mandate cancelled will be declared as "in arrears.
Contact client to understand circumstance and make arrangement to pay (arrangements will not be longer than 10 working days). Failure to communicate by the 5th working day will be marked as “in arrears”.

Default Letter

If payment not received, progress with default letter (6 working days from missed payment).

Statutory Demand

If no arrangement to pay or missed arrangement, progress with hard legal statutory demand (10 working days from initial missed payment).
Progress with statutory demand (21-day expiry from successful delivery) and continue to contact prior to a court date.

Bankruptcy Petition

File for bankruptcy petition once Statutory Demand expires for personal and corporate.

Court Order - Personal and corporate winding up

If it goes to court, label as default.
The court will recover funds or make arrangement to pay (take charge on the business or director assets)*.
* If the court can’t recover funds, this will be marked as written off.

Loan status

On each campaign page, the status of the loan will be clearly labelled with one of the following:

Good: The loan is repaying on time and correctly.

In arrears: The business is behind on repayments.

Restructured: The loan book has been restructured to help the business.

Arrangement: We have agreed to a recovery plan with the business

In administration: We are committed to recovering the full amount with the help of our legal team and the administrators.

In default: In default.

Recovered: The loan has been recovered.

Written off: The legal team attempted full recovery but was unable to retrieve the remaining amount of the loan.


Text & Email: Investors of the loan can opt-in to receive either text or email messages providing updates on a change of status or repayment. Investors can also contact the recoveries team at any time for further updates.

Call us on +44 (0) 203 318 9272
for more information

Risk warning

Investments like these involve risks including loss of capital. Please see our risk section before making an investment decision